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Gahvari, Firouz, and
Enlinson Mattos. 2007. "Conditional Cash Transfers, Public Provision of Private Goods, and Income Redistribution."
,
97(1): 491-502.
Show Article Details
DOI: 10.1257/aer.97.1.491
Abstract:This paper examines the role of cash transfers as a screening device when combined with in-kind transfers. It shows that linking in-kind to cash transfers makes first-best redistribution possible despite the government's inability to tell rich and poor individuals apart. Moreover, the maximal attainable welfare for the poor can be pushed beyond its first-best level by distorting downward the quality of the indivisible good the poor receive relative to the cash value of their net transfers. Using in-kind transfers alone, as in Besley and Coate (1991), leads to a third-best solution. (JEL D31, H23, H41)
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Link to Appendix
Authors:
Gahvari, Firouz
Mattos, Enlinson
JEL Classifications:
:
None
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